Gold prices are expected to trade higher today: Angel Commodities

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Angel Commodities’ report on Gold

On Thursday, spot gold prices rose 0.38 percent to close at $1334.8 per ounce having jumped to their highest in 15 weeks as nagging fears about global trade and expectations of a U.S. interest rate cut encouraged investors to flock toward bullion. Also, a lot of strength in gold is related to trade war tensions which have been increased after Trump’s tariff threats on Mexico. This has led to increase in demand of safe haven assets such as gold. On Tuesday, Fed Chair Jerome Powell moved away from his “patient” approach and instead acknowledged risks due to trade conflicts, saying the central bank would respond “as appropriate.” On the MCX, gold prices rose 1 percent to close at Rs.32800 per 10 gms

Outlook

We expect gold prices to trade higher continuing its positive momentum from the previous trading session while change in stance of the US Fed from a rate hike to rate cut is a surprise for global markets. On the MCX, gold prices are expected to trade higher today, international markets are trading lower by 0.1 percent at $1333per ounce.

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